National Intervention Measures
The below questions and answers aim to provide you with more information about the specifics of the National Intervention Measures implemented by CySEC which replaced the ESMA Intervention Measures as of 27th September 2019.
What does ESMA mean?
ESMA is the European Securities and Markets Authority, an independent regulatory institution with a mission to enhance investor protection and promote stable and orderly financial market in the European Union (EU).
What does National Intervention Measures mean?
The National Intervention Measures are replacing the temporary intervention measures implemented by ESMA and shall permanently intervene in the sales and distribution of CFD’s to Retail Clients.
What are the new National Intervention Measures introduced in 2019?
Effective from 27th September 2019, CySEC has formally adopted the ESMA measures on the provision of CFDs to Retail Clients in the national law of Cyprus. These measures can also be referred to as restrictions while they aim to further regulate and harmonize the Financial Services market in the EU. The measures include: average limits on opening positions, a margin close out rule on a per account basis, a negative balance protection on a per account basis, a Company specific risk warning delivered in a standardized way and preventing the use of incentives by a CFD provider. As a licensed and regulated institution, GBE Brokers Ltd. has adopted and follows the regulations as of its effective date.
What if You do not live within the European Union?
The National Intervention measures apply to all Retail Clients trading with GBE brokers Ltd. regardless of Client`s country of residence.
Will the Demo account conditions change?
Yes. GBE brokers demo accounts are in line with our live accounts and therefore the above measures will be applied to the demo environment for Retail traders.
Are the National Intervention measures permanent?
Yes, the National Intervention measures are permanently established and may be reviewed from time to time by CySEC.
Do the new National Intervention measures apply to companies as well?
National Intervention measures will apply to those companies who are categorized as Retail clients.
